Greshm is a government-independent basic income system. We use a USD-backed digital currency to generate a permanent income for every person. Basic income lessens the extent to which consumer spending depends on the unpredictable performance of the labor market and the strength of the volatile private financial sector.
Project Greshm manages the Greshm (XGD) currency for the benefit of society. We maintain a reserve of USD to back up its value. XGD is pegged to USD at par (one-to-one). After a period of time (e.g. 30 days), XGD matures into USD from the reserves. This rule enforces the peg. Whenever a unit of XGD changes hands, its term to maturity restarts. Circulation of XGD therefore lessens the impact on our USD reserves.
Greshm gets its name from Gresham’s law, which is the economic principle that “bad money drives out good.” For example, when the US stopped minting silver quarters, people hoarded the more valuable silver quarters, preferentially spending the new less valuable quarters. The new quarters then quickly replaced the silver quarters in active circulation.
We will introduce Greshm gradually by handing out XGD to individuals. Thanks to Gresham’s Law, people will preferentially spend XGD instead of USD. Preference to circulate XGD helps protect our USD reserves.